Diageo Plc · LSE:DGE
Diageo — Investor Day (May 2019)
48 slides from Diageo's investor day presentation, May 2019
Slide 1: Marketing Update 2019
MARKETING UPDATE 2019 ED PILKINGTON & CRISTINA DIEZHANDINO MAY 2019 No script 1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This document contains forward-looking statements that involve risk and uncertainty. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking
Slide 3: Marketing Update 2019
MARKETING UPDATE 2019 ED PILKINGTON & CRISTINA DIEZHANDINO MAY 2019 3
Slide 4: Cristina Diezhandino and Edward Pilkington
Cristina Diezhandino Edward Pilkington Scotch Category Director and Managing North America Chief Marketing & Director Reserve Innovation Officer 4 Good Morning. We are delighted to have the opportunity to share the stage today. My name is Ed Pilkington - the CMO for Diageo North America. I have been
Slide 5: Mental Availability, Physical Availability and Occasion Based Segmentation
Mental Availability Trends Physical Availability Occasion Based Segmentation Measurement As a team, we aim to be a best in class marketing organization. This means having a strong foundation in insight and data, great creative flair and being restless. This results in great work in the right place,
Slide 6: Catalyst: Data, Analytics and Marketing Decisions
Marketing Data Analytics Decisions Capability Catalyst Our 1,000+ marketers are collectively investing in the region of 2 billion pounds into the growth of our brands. Catalyst pulls together a vast amount of data from across the business to ensure those marketers invest wisely, and we have a dedica
Slide 7: Creative Excellence, Next Generation Media, Winning in Experiences & Culture
CREATIVE EXCELLENCE NEXT GENERATION MEDIA WINNING IN EXPERIENCES & CULTURE Diageo has been recognized as a best in class marketing organization for many years and in recent years we have made steps towards to become a more effectiveness led marketing function. We also are restless and agile, so even
Slide 8: Creative Excellence Framework: Insights, Purpose, Expression
INSIGHTS PURPOSE EXPRESSION EXECUTION M&E Why is creative excellence important? It is the DNA of marketers – embedded in our culture -- In today’s world, creative content has the ability to cut through. I’m going to take you through our framework for delivering creative excellence: INSIGHT: We alway
Slide 9: Crown Royal: Inspiring Exceptional Generosity
Crown Royal is a Jewel in our Crown. In the last year, for the first time, it has become the most valuable spirits brand in North America. It has achieved this through a strong and consistent positioning, and a strong innovation agenda that recruits new consumers in, takes the brand into new occasio
Slide 10: Crown Royal Advertising Video
So we’ll show a video that shows our recent advertising. You’ll see a film that was shot by award winning Director Spike Lee called the “Guy Who Has it All” – and he’s got it all not because of the fancy things he owns, but because of who he is – a magnanimous, likable character, clearly loved in hi
Slide 11: Crown Royal Equity Metrics vs Competitor
% pt. Diff. H1F19 % pt. Chg vs. Notable Crown Royal % H1F17 - H1F19 Competitor H1F19 Quality 50.9 2.9 2.4 Taste 44.2 5.1 0.8 Talkability 32.1 5.0 3.5 Distinctiveness 53.5 3.7 3.4 Relevance 34.6 5.4 0.3 Good to be seen drinking 37.5 5.0 5.5 Source: Kantar, IWSR Our positioning and execution of it is
Slide 12: Gordon's: World's No.1 International Gin
Shifting now to the World’s no.1 International Gin…Gordon’s. Ivan mentioned the resurgence of Gin earlier and Gordon’s is a great example of what creativity can do for brands … it demonstrates how getting the fundamentals and creative right, it’s possible to re-ignite growth. Only a few years ago th
Slide 13: Gordon's Framework: Shall We?
Running through the framework shared earlier. INSIGHT: Starting with relevant consumer insight “Life is full of distractions and preoccupations. It is when we are truly present in a moment that we most enjoy ourselves.” BRAND BELIEF: In that context Gordon’s has a lot to offer as according to Gordon
Slide 14: Gordon's Creative and Premium Pink Innovation
Here are some examples… Simple, enjoyable Shall We? creative, executed brilliantly through the line. On the top of the slide are two of the outdoor executions displayed across Europe. These are expressed in a simple, ownable, cheeky style that cuts through an increasingly crowded category. We also h
Slide 15: Gordon's Gross Profit ROI and Value Growth
Gross Profit ROI IWSR Value Growth Source: Internal data, IWSR These excellent fundamentals and creative results are delivering strong performance. Data from Catalyst clearly shows significant ROI improvement. As you can see on the chart, that has been an upward trajectory in the ROI on the assets d
Slide 16: Next Generation Media
CREATIVE EXCELLENCE NEXT GENERATION MEDIA WINNING IN EXPERIENCES & CULTURE It’s great to see two brands that have been around for a long time that are more vibrant and more successful than ever before and both actually have beautiful brand world’s that are deeply engaging. So we have great creative
Slide 17: Why Media Matters: Mental Availability
Why does this matter? Media is about mental availability: keeping our brands top of mind for millions of consumers. We know that consumers are not loyal to single brands but instead have a repertoire of brands they choose from. So we have to keep our brands top of mind for millions of consumers so t
Slide 18: Four Core Media Principles
Reach Always On Context Cultural Relevance So we have four core media principles which go across all that we do in our media planning. The first is Reach. To recruit and re-recruit MILLIONS of consumers we have to cast the widest net possible. Always On: Consumers seeing our brands throughout the ye
Slide 19: Reach: Crown Royal and the NFL
Reach * Confidential * So to some examples. How do we achieve reach? As context, Crown Royal was enjoyed by 33 million people in America last year. To maintain and grow that number i.e. recruitment and re-recruitment, we have to reach scale numbers of consumers with our messaging. Therefore, with Cr
Slide 20: Always On: 365 Media
Always ON: We have a platform which we call 365 media, media which is on 365 days a year. It was built using multiple internal and external data sources and tools to inform an occasion based approach. Across the year we identify all of the moments, drinks, and flavors that are of interest and releva
Slide 21: Context: Gordon's Yay Delay
Context is all about showing up in the right moment with the right message. To do this really well, we need a mix of strong data led planning and agility. We often talk about “planned spontaneity” : figuring out in advance what our brands can add to conversations and then delivering a message in rea
Slide 22: Cultural Relevance: Johnnie Walker
Finally cultural relevance is about showing up where consumers have passion. We need to use media to amplify those relevant cultural moments. Johnnie Walker’s message of Progress resonates broadly and we have been able to use media to amplify relevant cultural moments – be it the LGBTQ legislation c
Slide 23: Winning in Experiences & Culture
CREATIVE EXCELLENCE NEXT GENERATION MEDIA WINNING IN EXPERIENCES & CULTURE Lets now talk about our third and final area of focus today: Winning In Experiences & Culture. And I’m sure all of you will have heard many times about the booming experience economy, something we observe every day throughout
Slide 24: Vision for Experiences: Bulleit Experience
Our vision for winning in this area is to deliver amazing experiences in communities across the world that help people “celebrate life everyday everywhere”. The picture on this slide represents the experience for Bulleit Bourbon. It features “The Woody” vehicle, that’s been deployed across the US an
Slide 25: Community First, Brand World, Scale & Impact Framework
Community First Brand World Scale & Impact Amplification Revenue Driver Data & Tech. Again because this is so important we have created a framework to guide our teams to make the most of culture and experiences for each one of our brands. We start with a clear understanding of who we are talking to:
Slide 26: Five Routes for Culture and Experiences
Brand in Cultural Brand Homes Retail Space Drinks World Community Partnerships In the area of Winning in Culture and Experiences there are five different routes we currently invest in: Brand Homes Retail Spaces Brands in community Cultural Partnerships And finally in the Drinks World – our industry
Slide 27: Brand Homes
Brand Homes Starting with brand homes the amazing assets we already have at our disposable to educate and entertain those who are passionate about our brands. We know that when people engage in a brand homes experience they’re educated and entertained and that stays with them. 27
Slide 28: Brand Homes Around the World
These are a few examples of our brand homes around the world. Our flagship brand home and the most successful for Diageo to date is the Guinness Storehouse in Dublin. In 2017 it was named ‘Europe’s favourite tourist attraction’. This consumer led approach gives consumers an amazing experience they w
Slide 29: Visitors Appreciate the Product More After Visiting
Visitors Appreciate the More Than Half of Visitors Visits Lead to Future Product More After Visiting Share Their Experience Purchases Visitors from Visitors from outside of outside of Europe Europe 72% 67% 62% 57% 72% Say they have shared the Say the brand home visit has made Have purchased the expe
Slide 30: Johnnie Walker Experience in Edinburgh
As you will hear later from John, a key part of our investment in Scotland is the Johnnie Walker experience in Edinburgh – an amazing spot right in the heart of the city - that will enable those with a passion for Johnnie Walker and scotch to have the full brand history and experience come to life.
Slide 31: Investment in Scotch Distilleries
We want Edinburgh to be the starting point of the Scotch whisky journey, and we will encourage people to get out and visit the 4 corners of Scotland, with major investments at our distilleries around the country, starting with Glenkinchie in the Lowlands, Caol Ila on Islay, followed by Cardhu in Spe
Slide 32: Retail Space
Retail Space Retail is a developing area for us. There are, of course, different legislative environments but we are exploring some exciting opportunities and beginning to push the boundaries of retail experiences around the world. 32
Slide 33: Johnnie Walker Retail Outlet in Madrid
SECTION 22 We’ve recently opened our new flagship Johnnie Walker retail outlet in Madrid. This is new ground for us - a great example of how we will continue to innovate our business model. It gets us closer to consumers and tells the Johnnie Walker story exactly as we want it to be told. This new M
Slide 34: Baileys Treat Bar
The Baileys Treat Bar brings into retail life Bailey’s purpose of “co- conspirator in the pursuit of pleasure” • giving Baileys an active role in the treat space. • pop up in places where we know our target consumer is already interested and there is a lot of foot traffic. • In the US, we rolled it
Slide 35: Brand in Community
Brand in Community The third area is brand in community. While some consumers come to us, it is equally important to bring our brands into existing communities where people live… these can be physical communities or, equally, shared passion or interest points. We execute just as consistently and wit
Slide 36: Brand in Community Examples
Here are a few examples: Sports are a massive passion point around the world, one that Guinness has tapped into with its partnership with the Six Nations Rugby championship. We reached over 50m consumers in GB and Ireland with over 300m impressions. Rooted in its history of democratisation and inclu
Slide 37: Partner Social Media Content
further buzz. Our partners also work with us to produce social media content like this.. 36
Slide 38: Cultural Partnerships
Cultural Partnerships Winning in culture is about having a deep understanding of what people are watching, talking about and engaging with and then finding ways to connect and integrate our brands within those cultural moments. Finding the right partnerships in TV, film, music, arts and sport, allow
Slide 39: HBO Game of Thrones Partnership
In TV and in film, our HBO / Game of Thrones partnership is a great example of when we were able to leverage shared equity and link consumer passion points. The Game of Thrones phenomena highlighted a large overlap with the show’s fan base and whisky drinkers, which led to best-in-class, innovative
Slide 40: Johnnie Walker White Walker Global Success
Johnnie Walker White Walker is truly a Global Success - these images come from across the world and show high quality and consistent execution. 39
Slide 41: Celebrity and Influencer Partnerships
We have developed our in house capabilities to build authentic, long-term partnerships with celebrity influencers and media companies in a way which complements our brands and gives us access to wider audiences. This allows us to drive a conversation in culture, providing an opportunity to scale our
Slide 42: Drinks World
Drinks World As we know, food and drink culture also continues to grow. Bartenders are increasingly high profile and are vital advocates and partners for our brands. We work with the bartending community across the world on elevating the drink experience as well as rewarding and recognizing great ba
Slide 43: Diageo Bar Academy and World Class
The Diageo Bar Academy – this is a hugely powerful platform with global scale and even bigger ambitions. It drives advocacy for our brands amongst bartenders, and ensures our consumers get better experiences. This year we will be operating in more than 60 countries, both face to face and with an onl
Slide 44: Marketing Initiatives and Marketer Values
This morning we have given you a whistle-stop tour of some of the marketing initiatives that we are most excited about – and demonstrated the continued evolution of our marketing strategy and execution. It’s important to recognize that underpinning all of this work is the strength of our marketers -
Slide 45: Summary: Three Areas of Focus
CREATIVE EXCELLENCE NEXT GENERATION MEDIA WINNING IN EXPERIENCES & CULTURE In summary, we have a marketing organisation with a strong foundation in data and insight which is ensuring we are getting better outcomes from our investment. We have an effectiveness culture that is: • Built with a solid fo
Slide 46: Diageo: Celebrating Life, Every Day, Everywhere
DIAGEO CELEBRATING LIFE, EVERY DAY, EVERYWHERE
Slide 47: Cautionary Statement Concerning Forward-Looking Statements
Cautionary statement concerning forward-looking statements This presentation and its notes (together, this “Presentation”) contain ‘forward-looking’ statements. These statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward-looking
Slide 48: No script
•movements in the value of the assets and liabilities related to Diageo’s pension plans; •Diageo’s ability to renew supply, distribution, manufacturing or licence agreements (or related rights) and licences on favourable terms, or at all, when they expire; or •any failure by Diageo to protect its in